Bitcoin falls to $75,695 as Democratic sweep triggers $1bn in liquidations
US stock indices and major tokens dropped on Thursday after election results sparked fears of tighter AI regulation and investigations into crypto ventures.
Key takeaways
- 1Bitcoin fell 5.97% to $75,695.68 following the US election results.
- 2Total crypto liquidations reached $1.03bn over a 24-hour period.
- 3The Nasdaq Composite dropped 5.10% on fears of new AI regulations.
- 4A single Ethereum liquidation on Binance was valued at $10.94m.
- 5More than 198,000 individual traders were affected by the market volatility.
Bitcoin fell 5.97 per cent to $75,695.68 on Thursday. A Democratic sweep of the US Congress triggered more than $1bn in liquidations across the cryptocurrency market. Wu Blockchain reported that the price hit an intraday low of $75,568 during the session. Ethereum dropped 7.29 per cent to trade at $2,247.74.
The sell-off followed election results showing Democrats winning control of both the House of Representatives and the Senate. Investors sold off assets amid expectations of stricter oversight for the artificial intelligence industry. Wu Blockchain said the new legislative majority also plans to investigate business dealings involving the Trump family. These investigations will include their cryptocurrency projects.
Traditional markets saw similar declines as the political shift weighed on investor sentiment. The Nasdaq Composite fell 5.10 per cent. The S&P 500 and the Dow Jones Industrial Average dropped 3.43 per cent and 2.41 per cent respectively. YourKhabri data showed Bitcoin's market value sitting at $1.56tn as the price volatility increased during the day.
Traders with margin positions suffered heavy losses during the price swing. Data from CoinGlass showed $879.92m in positions were wiped out in a four-hour window. Long bets accounted for $818.90m of those losses. A single liquidation on the Binance ETH-USDT pair reached $10.94m. Short positions accounted for $61.02m of the total liquidations over the same four-hour period.
Total liquidations over 24 hours reached $1.03bn. This move affected 198,192 individual traders across various exchanges. Market participants are now watching for formal policy statements from the incoming congressional leadership regarding digital assets. The Democratic party has previously called for tighter rules on stablecoins and exchange operations to protect consumers.
The volatility affected the broader digital asset market. Ethereum hit a low of $2,236.78 before recovering slightly. YourKhabri data showed Chainlink falling 6.4 per cent to $10.99. Traders are now monitoring the $75,000 level for Bitcoin as a potential support point. The market remains sensitive to news regarding the composition of key financial committees in the new Congress.
The shift in power affects the timeline for pending crypto legislation in the US. Legislative priorities often focus on financial stability and the oversight of decentralized finance. Traders are watching for appointments to the Senate Banking Committee and the House Financial Services Committee. These groups will determine the direction of crypto rules through 2027.
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Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.